The credit card act was designed to stop credit card company abuse as well as protect consumers. As I have talked about many times in the past, this was not the type of protection that politicians marketed. It was nothing more than a small slap on the hand and credit card companies are still abusing consumers as they were before the act and coming up with new ways to get around the act.

One of the major segments of the credit card industry that was left completely unprotected was the small business owner. Small business owners racked up huge lines of credit and debts on Visas and Mastercards taken out in the name of their business. The act does nothing to protect them. The act only applies to consumer based cards.

Credit card companies are allowed to abuse the small business owner as much as they want with no consequences. In other words, it is still legal. I guess that shouldn’t really be a big surprise given that politicians obviously could care a less about the small business owner.

So, I guess a bunch of banking executives got together to figure out how they could get creative with the corporate or small business credit card. It has been discovered that certain banks are issuing corporate cards to individuals who don’t even have a corporation or small business. In other words, they are issuing new cards to consumers that are not protected by the new credit card laws.

Mailings of corporate card applications are up 256% since last year. How are they doing it? The application looks pretty much like an individual application. They basically have eliminated spaces for information about businesses on the applications.

Now the best part of the story is that politician Chuck Schumer of New York was outraged about these practices which prompted him to call the Federal Reserve to do something about it.

It begs the questions. If this outraged politician Schumer so much that banks are abusing consumers in this manner, why did he and other politicians pass a bill that doesn’t protect every type of credit card? Better yet, how about doing something about it in Congress rather than asking the Federal Reserve?

This is no different than the politicians passing the credit card act and then giving credit card companies 18 months to follow the new laws. Of course, it was during that 18 months that credit card companies and banks abused consumers the most.

You have to love those politicians doing their job and protecting Americans against abuse.